Fitch Affirms Sankaty High Yield Partners III, L.P.

NEW YORK -- Fitch affirms all classes of notes issued by Sankaty High Yield Partners III, L.P. These affirmations are the result of Fitch's review process and are based on trustee information as of Nov. 30, 2006. The following rating actions are effective immediately:

--$95,000,000 class A-1A first senior secured variable-funding notes affirmed at 'AAA';

--$105,000,000 equivalent class A-1B first second senior secured variable-funding multi-currency notes affirmed at 'AAA';

--$35,000,000 class A-1C first senior secured variable-funding swingline notes affirmed at 'AAA';

--$220,000,000 class A-1 first senior secured floating-rate notes affirmed at 'AAA';

--$22,500,000 second senior loans affirmed at 'AA';

--$14,000,000 class A-2 second senior secured floating-rate notes affirmed at 'AA';

--$29,500,000 class B third senior secured fixed-rate notes affirmed at 'A';

--$11,000,000 class B third senior secured floating-rate notes affirmed at 'A';

--$7,500,000 class C senior subordinated secured fixed-rate notes affirmed at 'BBB';

--$43,000,000 class C senior subordinated secured floating-rate notes affirmed at 'BBB';

--$3,500,000 class D subordinated secured fixed-rate notes affirmed at 'BB';

--$17,500,000 class D subordinated secured floating-rate notes affirmed at 'BB';

--$12,500,000 class E junior subordinated secured floating-rate notes affirmed at 'B'

Sankaty High Yield Partners III L.P. is structured as a market value collateralized debt obligation (CDO), which invests the proceeds of its note issuance in a diverse portfolio of bank loans, high yield securities, and mezzanine and special situation investments (including private equities and structured products). Founded in 1998, Sankaty Advisors, LLC is the credit affiliate of Bain Capital Inc.

The ratings are based upon the asset pool, the advance rates applicable to those assets and the credit enhancement provided to the various rated classes of debt through subordination and unrated equity capital. The ratings assigned to all classes of notes address the likelihood that the investors will receive timely payment of interest and ultimate payment of principal.

Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Derivative Fitch web site at www.derivativefitch.com. For more information on the Fitch VECTOR Model, see 'Global Rating Criteria for Collateralised Debt Obligations,' dated Oct. 4, 2006 and also available on Fitch's web site at www.derivativefitch.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.derivativefitch.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site. Fitch means Fitch, Inc., Fitch Ratings, Ltd. and their subsidiaries including Derivative Fitch, Inc. and Derivative Fitch Ltd. and any successor or successors thereto.